CDB ends FY24 with PAT expanding 55% YoY

Citizens Development Business Finance PLC (CDB), the fourth largest non-bank financial institution in Sri Lanka, rebounded in the 2023-24 financial year on the back of improved macroeconomic conditions. 
Demonstrating growth in profitability, Earnings Per Share increased from Rs 23.29 to Rs 35.95.  Regular cash flow generating assets increased from 91 percent to 93 percent. The Tier I and Tier II ratios were maintained above the statutory limits at 16.0 percent and 16.4 percent, while equity surpassed Rs. 20 billion. 

The company closed the year with a revenue growth of 11 percent, reaching Rs 23.9 billion.

The growth was driven by a 10 percent increase in its main revenue stream of interest incomes that reached Rs 22.2 billion. Interest expenses were contained at a much lower 4 percent growth (despite sustained growth in deposits by 17 percent), enabling a 20 percent growth in the net interest income. 

The net interest margin too, improved from 7.18 percent to 7.77 percent. Reflecting the growth of the company’s balance sheet, CDBs Return on Average Equity (after tax) improved from 9.08 percent in the previous financial year, to 13.10 percent, and the Return on Average Assets (after tax) increased from 1.55 percent to 2.15 percent, while the Net Asset Value per Share went from Rs. 260.40 as at end March 2023, to Rs. 285.22 by end 
March 2024.  

The gross NPL improved from 15.71 percent in the previous financial year to 12.06 percent for the 90 days past due portfolio, indicating the sound quality of lending. 

Total assets of the company grew by 22 percent to Rs. 129 billion, boosted by a 12 percent growth in loans and advances to customers and a 75 percent growth in liquid assets. The deposit base also grew by 17 percent to Rs. 73.3 billion.

CDB closed the financial year 2023/24 posting Rs. 4.6 billion in profit before taxes and a net profit of Rs. 2.5 billion, a 55 percent growth against 2022-23.